However, the delay between consummation and settlement in escrow states is likely to increase the need for post-closing corrected disclosures. ![]() Under the new rule, lenders and settlement agents must make more rigorous good-faith efforts to provide estimates that are more accurate. The overage is then refunded after the final disbursements are made. In today’s current practices, many providers add a cushion for costs on the HUD-1 to account for items that can vary between the signing and when the transaction is settled after recording, such as recording fees, pro-rations and prepaid interest. Here's a look at which fees can and can't change: Generally, good faith requires the closing cost estimate on the initial Loan Estimate to equal the final amount charged on the Closing Disclosure. ![]() Similar to existing law, the Consumer Financial Protection Bureau’s final TILA-RESPA rule restricts the circumstances in which consumers can be required to pay more for settlement services than the amount stated on their Loan Estimate.
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